Exam (elaborations)
Coursework for Unit 19: Pitching for a New Business
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- PEARSON (PEARSON)
Coursework piece for Unit 19: Pitching for a New Business With research, analysing and evaluation
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BTEC Business Level 3P3 - Explain your marketing plan for a selected micro-business.
M2 - Analyse the financial and marketing plans for your micro-business
In this section of the report, I will analyse the financial and marketing plans while outlining
the marketing plan for the brand-new micro Instagram business.
Target market
Through the use of psychographic segmentation, I have found my target market is people
who are into a sustainable lifestyle and value recycling and thrifting new clothes and
products. They will have an interest in social media and new “thrift pieces” that would be
available to them. Using demographic segmentation, I have identified that the target market
will be teenagers to young adults and between the age of 17 - 28. They will have an interest
in clothes and fashion and will be in university or begging to work so thrifting and purchasing
second-hand clothing may be a more suitable, cheaper option. Through geographic
segmentation, I identified that urban areas will be where the target market will be due to the
large amount of money in these areas and due to the small size of Bahrain, urban areas are
where most of the population is living.
Market research
Secondary research
Zara
Zara is one of the new fashion brand's primary competitors. Even if Zara is larger than the
new micro business in terms of size, our target market shops there often making them
competitors.
Zara’s products are clothes, shoes and accessories and they are a major fast fashion brand
that is known globally. Instead of releasing clothes on a seasonal change, Zara produces
new products all year round with only a limited amount of them at a time and therefore this
increases the value. They also do source and manufacturer in their own facilities instead of
outsourcing (EdrawMind). This knowledge is beneficial to my new business since it gives me
perspective on what products my competitors supply to customers and how they operate.
Additionally, it enables me to recognise some of the procedures they employ, such as
sourcing, which is the new microbusiness's preferred method. As a result, my choice to
source rather than outsource is stronger.
The prices that Zara offers are generally a lower pricing strategy as it is able to do this due to
the fact that it does not need to spend excessive amounts of money on advertising and raw
,BTEC Business Level 3
materials (MBA Skool Team). Their pricing is regionally specific and market-based, with the
goal price being the amount that customers are willing to spend. The profit margin that each
item generates is able to be set in this way. Additionally, they hardly ever provide product
discounts, and when they do, it's just twice a year at a 50% discount (MBA Skool Team).
This is useful since it offers me a better insight into how Zara handles pricing strategy and
recommendations for how to set my prices in line with the market in my country.
Zara is extremely smart with the promotion of the business since they do not spend money
on advertising such as TV ads, they advertise heavily on social media as this is a direct
target of the younger generation which makes up a proportion of the target market. They use
platforms such as Instagram, Tiktok, Facebook and Twitter to advertise their products and
generate interest. Even though, they do spend money on billboards which are extremely
engaging. Another aspect to note is that they do not place their logo on any of their products
as they state that this is a waste of expense and that this money can go towards opening
new stores (EdrawMind). This information was very helpful to the new business start-up as it
shows me that there can be many similarities such as only advertising through social media
and not placing logos on products. I now know that these strategies have the potential to
work and know-how Zara accesses its target market which I can competitively imitate.
Place in the marketing mix for Zara is extremely bigger than the new micro business but
looking at their strategy may give some inspiration to the new business start-up. Zara sells
its products in stores in over 90 countries and online through its website and other websites
through the use of e-commerce. They own most of their stores to enable the same
experience for the customer no matter the location which provides a sense of familiarity and
comfort. The location of stores is in well-established areas with the interior design being
modern with mirrors and good lighting (MBA Skool Team). This information is helpful to the
new business as we can see where the locations of Zara are in Bahrain and the response
behind it. However, these are not strategies that I will be using due to the size of my new
micro business and the funding.
Depop
This business is very similar to the new start-up business and could be seen as a competitor
due to the growth it is having. Depop is social e-commerce business that is online and allows
people to sell their used or new items on the website/app and Depop takes a percentage to
gain profit. It has a global presence and has evolved the trend of thrifting online.
,BTEC Business Level 3
Depops products are anything from clothes, and shoes to accessories and ranges
depending on what the seller what to sell. The clothes are usually pre-loved and are
second-hand or vintage but the concept of Depop is thrifting and reusing. Their products are
not checked by the company for quality and this is checked through the seller of the product
and the customer buying the product. Depop acts as a platform where people can easily
thrift clothes and sell their clothes. This is very useful because this is similar to the new
start-up concept but we are on a smaller scale and the products are passed from the
supplier to the customer through us so that quality is checked for. This can help me with the
ideas of the products that I could offer.
Depop’s pricing strategies are different to a normal clothes business as they allow the seller
to choose the price at which they want to advertise their product at and they Depop will add
a 10% fee on the sale price. They take the fee from either the PayPal account or the card
being used. There may also be a PayPal fee on the transaction and this can vary depending
on the country (Javed). Their pricing strategy is very helpful to the new start-up as it gives an
idea of the kind of fee to charge sellers which can gain profit. However, the fee may be larger
due to the smaller size of the new start-up.
The place strategy of the marketing mix for Depop is simple. They only sell online through
their website or App that is mostly used on mobiles. This makes it easier for sellers to upload
their items and modify the listing of the product as they want. Also since their target market
is global, this means that they all have a connection through the app. This is the idea for the
new start-up as the page where the products will be advertised and sold is through social
media which is online, however, with growth, this could be changed to an App depending on
the revenue made. Therefore, this information from Depop was inspirational and allowed us t
understand their technique for selling online.
Depop uses various platforms to promote its business such as E-mail, Instagram, Tiktok and
other social media. They have a solid email marketing strategy and their average span is
-3.9 which is very good. They also only use 18 characters which keeps the person receiving
engaged with the email (Panoramata). They also advertise sellers' products on their
Instagram page and tag the sellers in the post, this creates a community. They do spend
money on billboards as this is an online business. Therefore, this idea and strategy are
useful as the new start-up will be solely online and in person if requested. Even though we
do not plan to promote through emails, the Instagram account strategy could be used on the
new business. This also shows how our competitor attracts their loyal customers and raises
brand awareness.
, BTEC Business Level 3
Primary research
I have also conducted primary research through the use of a questionnaire as I can gain
more data from the target market that will give me the information tailored to the new
business start-up. The questions are built from the marketing mix and will allow me to gain
answers that I can analyse and use to create and plan for the new business.
I have asked 10 people to answer the questions stated below:
Name Date and location
Would you purchase second-hand clothes? yes/no
Would you be interested in selling your yes/no
second-hand clothes?
Do you shop for clothes online or in-store? online/in-store
Do you resell your clothes or throw them resell/throw away
away?
How many times a month do you buy new Once
clothes? Twice
Three times
Four times
Five times
Do you gain your fashion inspiration online? yes/no
Do you buy clothes from in the country or inside/outside
outside of the country?
The results from the questionnaire can be seen below:
Question 1 - Would you purchase second-hand clothes?
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